Is Facebook Poised to Head Higher?
T = Trends for a Stock’s Movement
Facebook is engaged in building social products in order to create utility for users, developers, and advertisers. People use Facebook to stay connected with their friends and family, to discover what is going on in the world around them, and to share and express what matters to them with the people they care about. Developers can use the Facebook platform to build applications and websites that integrate with Facebook to reach its global network of users, building personalized and social products. Advertisers can engage with more than 900 million monthly active users on Facebook — or subsets of its users — based on information they have chosen to share.
Facebook shares are up 3.7 percent in premarket trading on Thursday morning after it was officially announced on Wednesday that the social media giant will join the S&P 500 on December 20. After the company’s botched initial public offering, when it joined the Nasdaq in 2012, Facebook’s stock has risen 173 percent from lows seen at the beginning of September of that year. Facebook has proven to be an expert at the monetization of mobile, which has helped the company keep pulling in revenue despite the decline in the use of PCs. Facebook currently has a market capitalization of more than $120 billion, the New York Times reports. “We view Facebook as a leading company from a leading industry, and we find that it’s very representative of the technology sector,” a spokesperson for the S&P, Dave Guarino, said to the Times. “So it’s a good fit for the S&P 500.”